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Author Question: You have decided to create a portfolio with two assets: stock X and stock Y. You invest 20% of your ... (Read 62 times)

fbq8i

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on: Apr 25, 2021

Question 1

You construct an equally weighted, two asset portfolio between McDonald's and Burger King. The standard deviation of McDonalds is 40% and 50% on Burger King. The returns on the two companies are perfectly correlated. What is the expected standard deviation of the portfolio?
◦ 40%
◦ 42.5%
◦ 45%
◦ 45.5%
◦ 50%

Question 2

You have decided to create a portfolio with two assets: stock X and stock Y. You invest 20% of your funds in X and 80% of your funds in stock Y. The standard deviation of X is 30% and the standard deviation of Y is 40%. The two stocks have a correlation coefficient of - 0.5. What is the portfolio's standard deviation?
◦ 30.00%
◦ 29.46%
◦ 33.24%
◦ 36.92%
◦ 40.00%
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Marked as best answer by fbq8i on Apr 25, 2021

BUTTHOL369

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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fbq8i

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

duy1981999

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Reply 3 on: Yesterday
Gracias!

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